The Fed Governor’s Comments on the Target Rate
In an interview, US Federal Reserve Governor Christopher Waller provided insight into the upcoming Federal Open Market Committee (FOMC) decision on interest rates. Waller suggested that recent economic data gives the Fed room to proceed cautiously in determining any rate changes.
Interest Rate Cuts Unlikely in the Short Term
Waller’s comments align with Fed Chair Jerome Powell’s warning that the central bank is prepared to raise rates if necessary. Additionally, Patrick Harker, President of the Federal Reserve Bank of Philadelphia, expressed doubt about interest rate cuts until 2024. Harker explained in a CNBC interview that current economic news allows the Fed to take a measured approach and wait for further data.
Following Waller’s statements, Bitcoin prices declined and the S&P 500 Index experienced a slight dip.
Impact on Bitcoin Amid Economic Uncertainty
The upcoming FOMC meeting in September could have a significant impact on Bitcoin and the remaining meetings of the year. Waller’s statement suggests that the Fed will carefully consider unemployment and inflation data before making any decisions. The current consensus among respondents on the CME FedWatch Tool indicates a 95% confidence in no rate hike in the upcoming meeting.
Hot Take: Fed Officials to Maintain Current Target Rate
Based on Waller’s comments and the market expectations, it is likely that the Fed officials will maintain the current target rate. The upcoming rate decision will be closely watched by investors, as it could have lasting effects on BTC price. The Fed’s cautious approach reflects the economic uncertainty and the importance of data analysis in shaping monetary policy.
By
By
By
By
By